Legislature(2001 - 2002)
04/24/2002 09:16 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE CS FOR CS FOR HOUSE BILL NO. 402(HES)
"An Act relating to diversion payments, wage subsidies, cash
assistance, and self- sufficiency services provided under the
Alaska temporary assistance program; relating to the food
stamp program; relating to child support cases that include
persons who receive cash assistance or self-sufficiency
services under the Alaska temporary assistance program; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE FRED DYSON, the bill's sponsor, informed the
Committee that the previous year, an outside audit [copy not on
file] had conducted on the State's public assistance plan, and that
the recommendations of that audit "are encapsulated in this bill."
He stated that this bill represents the "next step in welfare
programs," by placing "in statute and practice the whole concept of
work first." He communicated that the emphasis of this program is
to take a combination of "public assistance monies, food stamp
monies and other available funding to subsidize employment for
welfare applicants." He stated, "it is a paradigm shift" for when a
person applies for welfare benefits, instead of being placed on
welfare and receiving a welfare check, they are first directed
toward becoming employed and receiving a paycheck. He stated that
this approach to the welfare system has been successful in the
State of Oregon where the people in the program have had
significant success in retaining their jobs, and the private sector
is delighted to "get workers to fill jobs that were marginally
economical before." He noted this proposed program is supported by
the Administration and the Department of Health and Social
Services.
Representative Dyson qualified that two components of this bill are
not endorsed by the Administration: the first being the more
stringent sanctions placed on individuals who do not comply with
the directives to obtain employment; and the second being a program
participant limit of 25 percent of the total number of eligible
welfare recipients. He stated that the Administration favors no
restriction on the number of participants in the program at any
given time. He informed that the 25 percent cap is based on both
Alaska's employment studies as well as the Oregon program's
experience. He urged the Committee to support the bill as
presented.
Senator Leman commended Representative Dyson, Senator Green and the
Department for their constructive work on this bill. He endorsed
the legislation and stated that the Senate Health Education and
Social Services committee substitute is an acceptable compromise
for it instills incentives for the Department of Health and Social
Services to revise the welfare program as the Legislature intends,
in a "compassionate" manner.
Co-Chair Donley stated that his inclination is to trust
Representative Dyson and Senator Green's judgment. He asked why
national studies imply that Alaska has exerted minimal efforts in
addressing welfare reform.
Representative Dyson responded that statistics indicate "a
remarkable reduction" of the number of individuals on welfare in
the State. He stated "there needs to be a cultural shift," to find
jobs, help create jobs and to employ the people needing these jobs,
which involves hiring administrative people with a "passion and
vision," in addition to adopting enabling State statutes. He stated
it is the Legislature's duty to enact legislation to support the
process, and "it is the Administration's job to find the people who
really have a passion" to make the changes happen.
Senator Green noted that as part of the federal welfare reform
legislation, Congress granted "American Indian waiver" status to
the State of Alaska that allows Native people who are residing in
rural areas or other areas of the State where "economic non-
viability" limits employment opportunities, to be exempt from the
five-year (60-month) limitation on welfare benefits. She stated
that because the "substantial number of people" granted waivers are
not included in the total number of participants in which the 25
percent limitation is calculated, she supports the proposed 25
percent cap. She informed the Committee that the limitation on
participation in the federal work-first program is 20 percent and
that the State of Oregon, which has a higher number of exempted
individuals than Alaska, has a 30 percent cap.
Co-Chair Donley asked whether there is a limit on how long people
could receive welfare benefits.
Representative Dyson responded that there is a limit of 60-months;
however, unlimited waivers are granted to "severely handicapped"
individuals or those who serve as caretakers to a handicapped
child.
Representative Dyson voiced concern that the Department would grant
waivers to individuals "just because there is no job in their
area." He asserted that people should live in areas where job
opportunities exist, and he exampled that Alaska's indigenous
people historically followed caribou herds; in other words they,
"moved to where the resource was."
Representative Dyson stated that the Department of Health and
Social Services has assured him that waivers would not be granted
to people "just because" they live in an area with limited job
opportunities. He expressed that the proposed program would provide
training and other life skills with the expectation that people
would relocate.
Senator Green expressed that this legislation would provide the
Department "with a great tool" to encourage some welfare benefit
recipients "who have been reluctant or have refused" to participate
in job training programs or go for interviews, to reenter the work
force. She stated the current system is inefficient and "doesn't
serve either the Department or the client well at all" as there is
no incentive for people to seek employment; wherein, the proposed
legislation would deny benefits to individuals if they refuse to
participate in the training and employment program.
JIM NORDLUND, Director, Division of Public Assistance, Department
of Health and Social Services, stated that Representative Dyson and
Senator Green have presented the bill in an accurate manner.
Senator Green asked the testifier whether the Department would
offer any recommendations to the Governor regarding signing this
bill into law.
Mr. Nordlund commented that the final version of bill would be a
factor in any recommendation. He stated that the Department
supports no limitation on the number of participants in the program
because State law specifies criteria as to who would or would not
be eligible. However, he noted that the proposed 25 percent cap is
an improvement over the current 20 percent limit. He stated that
the Department's concerns about denial of benefits to people who do
not participate in the program have been addressed in the committee
substitute.
Co-Chair Kelly ordered the bill HELD in Committee.
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